What Insurance Is Required and Why?

In Alabama, there are license requirements for architects, but the laws don’t mandate a strict insurance policy. For this reason, you should investigate the insurance status of each architect you consider to ensure they have proper coverage. Look for a combination of the following two elements:

• General Liability: This coverage protects architects against a property damage or personal injury. If they accidently ruin a piece of a client’s furniture or if you accidently trip in their office, they’re insured.
• Professional Liability: This policy covers the architect in the event of a professional error like failing to adhere to build codes or going back on a professional promise.

As a home or business owner, you’re probably wondering how these policies protect you. Insurance serves as a financial support system for your architect. If something goes wrong, you may have the right to sue or seek compensation. However, if your architect has insurance, this increases the likelihood that they can afford to pay damages, and you’ll receive compensation in a reasonable time frame.

What Kind of Insurance Should You Have?

You should already have a homeowner’s insurance policy (or the commercial equivalent) for your home or commercial building. While this policy covers liabilities before your project, it might fall short in the future. For instance, if your commercial building architect expands your office space and adds two staircases, your liability has increased because employees, customers or clients have more opportunities to slip or fall down the stairs. Additionally, your new space might have a higher property value your current policy can’t cover.

What should you do? Call your insurance agent to explain your new building plans or changes being made to your space. Expand or modify your policy as needed to cover any new exposures and risks. Make sure the language of your contracts and insurance policies lists your architect’s and builder’s policies as the default and yours as the secondary policy. This will shift responsibility for unforeseen incidents away from you.

What Questions Should You Ask Your Architect about Insurance?

Before you talk to your insurance agent, you’ll need to know a few details about your architect and the project. Here’s a list of questions to get you started:

• What type of insurance policies do you have?
• What are the limits of those policies?
• What parts of the design are considered major changes to an existing structure?
• Do any of these design elements increase occupants’ safety?

To ensure your project runs as smoothly as possible, work with an experienced architect with the right credentials.

Bill Whittaker, Registered Architect (BWA) is an experienced architecture firm dedicated to giving Alabama and Georgia customers the personal attention they need to make their architectural projects come to life. Learn about the BWA team with a visit to our website or give us a call at (256) 689-0238.